Posts tagged "Influence: The Psychology of Persuasion"

March 1, 2019 Posted by David GreenwoodExcerpts
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I was walking down the street when I was approached by an eleven- or twelve-year-old boy. He introduced himself and said that he was selling tickets to the annual Boy Scouts circus to be held on the upcoming Saturday night. He asked if I wished to buy any at five dollars apiece. Since one of the last places I wanted to send Saturday evening was with the Boy Scouts, I declined. “Well,” he said, “if you don’t want to buy any tickets, how about buying some of our big chocolate bars? They’re only a dollar each.” I bought a couple and, right away, realised that something noteworthy had happened. I know that to be the case because: (a) I do not like chocolate bars; (b) I do like dollars; (c) I was standing there with two of his chocolate bars; and (d) he was walking away with two of my dollars.

Take, as proof, what happened when psychologist Thomas Moriarty staged thefts on a New York City beach to see if onlookers would risk personal harm to halt the crime. In the study, a research accomplice would put a beach blanket down five feet from the blanket of a randomly chosen individual – the experimental subject. After a couple of minutes on the blanked spent relaxing and listening to music from a portable radio, the accomplice would stand up and leave the blanket to stroll down the beach, A few minutes later, a second researcher, pretending to be a thief, would approach, grab the radio, and try to hurry away with it. As you might guess, under normal conditions, subjects were very reluctant to put themselves in harms way by challenging the thief – only four people did so in the twenty times that the theft was staged. But when the same procedure was tried another twenty times, with a slight twist, the results were drastically different. In these incidents before taking his stroll, the accomplice would simple ask the subject to please “watch my things,” which each of them agreed to do. Now, propelled by the rule for consistency, nineteen of the twenty subjects became virtual vigilantes, running after and stopping the thief.

December 12, 2018 Posted by David GreenwoodExcerpts
0 thoughts on “How Clothes Shops Use the Contrast Principle to Boost Sales”

Those who employ it can cash in on its influence without any appearance of having structured the situation in their favor. Retail clothiers are a good example. Suppose a man enters a fashionable men’s store and says that he wants to buy a three-piece suit and a sweater. If you were the salesperson, which would you show him first to make him likely to spend the most money?

Clothing stores instruct their sales personnel to sell the costly item first. Common sense might suggest the reverse: If a man has just spent a lot of money to purchase a suit, he may be reluctant to spend very much more on the purchase of a sweater. But clothiers know better. They behave in accordance with what the contrast principle would suggest: Sell the suit first, because when it comes time to look at sweaters, even expensive ones, their prices will not seem as high in comparison. A man might bulk at the idea of spending $95 for a sweater, but if he has just bought a $495 suit, a $95 sweater does not seem excessive. The same principle applies to a man who wishes to buy the accessories (shirts, shoes, belt) to go along with his new suit.

Contrary to the commonsense view, the evidence supports the contrast-principle prediction. As sales motivation analysts Whitney, Hubin, and Murphy state, “The interesting thing is that even when a man enters a clothing stores with the express purpose of purchasing a suit, he will almost always pay more for whatever accessories he buys if he buys them after the suit purchase than before.”

November 16, 2018 Posted by David GreenwoodExcerpts
0 thoughts on “How Scarcity of Goods and Exclusivity of Information Significantly Increases Sales”

After we talked in my office one day about scarcity and exclusivity of information, he decided to do a study using his sales staff. The company’s customers—buyers for supermarkets or other retail food outlets—were phoned as usual by a salesperson and asked for a purchase in one of three ways. One set of customers heard a standard sales presentation before being asked for their orders. Another set of customers heard the standard sales presentation plus information that the supply of imported beef was likely to be scarce in the upcoming months. A third group received the standard sales presentation and the information about a scarce supply of beef, too; however, they also learned that the scarce-supply news was not generally available information—it had come, they were told, from certain exclusive contacts that the company had. Thus the customers who received this last sales presentation learned that not only was the availability of the product limited, so also was the news concerning it—the scarcity double whammy.

The results of the experiment quickly become apparent when the company salespeople began to urge the owner to buy more beef because there wasn’t enough in the inventory to keep up with all the orders they were receiving. Compared to the customers who got only the standard sales appeal, those who were also told about the future scarcity of beef bought more than twice as much.